Individual Versus Group Behavior and the Role of the Decision Making Procedure in Gift-Exchange Experiments

Max Planck Institute for Research into Economic Systems, Papers on Strategic Interaction Working Paper No. 27-2002

32 Pages Posted: 14 Mar 2003

See all articles by Martin G. Kocher

Martin G. Kocher

Ludwig Maximilian University of Munich - Faculty of Economics; Institute for Advanced Studies (IHS) - Department of Economics & Finance; Göteborg University - School of Business, Economics and Law; Queensland University of Technology - School of Economics and Finance

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods; University of Cologne - Department of Economics

Date Written: August 2002

Abstract

We test for behavioral differences between groups and individuals in gift-exchange experiments. Related studies establish group behavior as typically closer to the game - theoretic equilibrium. We show that this result may depend crucially on the decision making procedure within groups. A novel decision making protocol opens up the black box of group decision making and allows to track important features of the group interaction process. We are able to show that the mere fact of being a group member shifts initial individual choices towards the game - theoretic equilibrium.

Keywords: gift-exchange experiment, group behavior, individual behavior, decision making, reciprocity

JEL Classification: C72, C91, C92, D70

Suggested Citation

Kocher, Martin G. and Sutter, Matthias, Individual Versus Group Behavior and the Role of the Decision Making Procedure in Gift-Exchange Experiments (August 2002). Max Planck Institute for Research into Economic Systems, Papers on Strategic Interaction Working Paper No. 27-2002. Available at SSRN: https://ssrn.com/abstract=333322 or http://dx.doi.org/10.2139/ssrn.333322

Martin G. Kocher (Contact Author)

Ludwig Maximilian University of Munich - Faculty of Economics ( email )

Ludwigstrasse 28
Munich, D-80539
Germany

Institute for Advanced Studies (IHS) - Department of Economics & Finance ( email )

Stumpergasse 56
A-1060 Vienna, A-1060
Austria

Göteborg University - School of Business, Economics and Law ( email )

Vasagatan 1
Goteborg, 40530
Sweden

Queensland University of Technology - School of Economics and Finance ( email )

GPO Box 2434
2 George Street
Brisbane, Queensland 4001
Australia

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

University of Cologne - Department of Economics

Cologne, 50923
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
343
Abstract Views
2,881
rank
85,822
PlumX Metrics